There is rife news that German luxury car maker BMW is going to hike prices of its product portfolio by up to 10 per cent, as effective from January 2014. This price hike is being associated to business sustainability and profitability. Shedding more light on this price hike, company officials said that the increase will be applicable for BMW and MINI product range. Philipp von Sahr, BMW Group India President specifically commented on proceedings, “At BMW Group, we believe that both profitability and growth are essential for a win-win situation at the end. We are making price decisions with all due care and consideration ensuring that they pay off in the long run.”
Here, it must be recalled that other auto companies too had, one by one, announced price hikes across their selective or entire product range in the current fiscal. Earlier, in August 2013, the auto company increased prices by up to 5 per cent. At that time, the price hike on vehicles was associated to higher import costs as a result of huge rupee devaluation. Currently, BMW has a pretty strong product line that sells in the country. The product offerings of the company include 1 Series, 3 Series, 5 Series, 6 Series, 7 Series and X Series models. This is certainly an impressive product range, which essentially shows that the auto company has plans of becoming one of the leading luxury car maker in the Indian auto market.
it must be noted that the stakes are high and competition is cut-throat between top luxury brands. Thus, the effect of this hefty price-hike margin will be quite interesting to wait and watch. Will there be a dip in brand's overall sales volume? Will this be only short term effect? The answers to such questions are pretty arguable, but it should not be forgotten that the decision has been taken by top bosses who have tremendous market experience. So better not many any predictions, but only wait how things fair up in the near future.
